The Development Trend of Environmental Protection Industry Stimulated by Financial policy

The development of environmental protection industry (EPI) has connection with many factors, such as policy, market and economic factors. Different factors have complex mutual influence, and the sensitivity of EPI to policy is higher than other industries, so its development has its own characteristics. This paper adopted the method of system dynamics (SD) to analyze the promoting effect of Financial policy on the development of EPI regarding the environmental protection market (EPM) as the carrier of EPI, and taking the Supply and the market concentration degree (MCD) as the characterization object. The research conclusion shows that Financial policy has an obvious effect on both Supply and MCD, among which the effect on Supply shows a constant scale effect, while the effect on MCD shows a decreasing scale effect.